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tv   Prime Interest  RT  October 29, 2013 11:30pm-12:01am EDT

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and of putting u.s. commerce in the economic gutter as well r.t. commentator sam sachs joins me live from the hill and we'll tell you why snooping may cost the u.s. big bucks in the form of big business and where there's smoke there's a burn that's right no fire here we're talking about cigarettes see how smokeless cigs are banning the major planes from the doctor industry and if you're just in your name for a vacation might we suggest crowdfunding your next leisure time getaway that's in today's big deal but now let's get to the show.
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just one week ahead of schedule negotiate negotiations on a massive e.u.'s european union union trade agreement and s.a.a. spying on european officials are in your ear aided both governments here in the u.s. worldwide and in europe now the trade agreement said to be worth almost two hundred seventy billion dollars and slated to create over two million jobs could now be in jeopardy french president francois all along said that the n.s.a. spying has threatened trade talks or at the very least required a lot more data protection laws joining me live from the hill where the house congressional hearing on five to reform is underway our chief political commentator sam. here now sam i want to start off by asking you about the potential economic ramifications this n.s.a. spying has or could have globally. but it's going to be under bust and so yeah most of since these n.s.a. revelations have come out
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a lot of concerns have been on constitutional concerns privacy rights civil liberties right to free association things like that all very legitimate concerns and also on diplomatic concerns what does this do to the u.s. image abroad what does this do with our relationship with our allies that again very legitimate concerns but let's talk about or the economic consequences of the n.s.a. is mass spying programs this is something that if you are lawmakers have talked about senator ron wyden did recently talk about him he urged his colleagues to say anyone who supports these n.s.a. spying programs needs to consider the bad reputation they're putting on u.s. companies as they try and enter markets abroad and we're looking at economic damages from trade deals to changes how tech companies have to do business to even lost business totaling tens of billions of dollars now sam boeing was in the running for a major brazilian war plane contract is that defense contract in trouble as a result of u.s. brazilian tensions over alleged u.s. spying on the brazil's president. it's all very well could be or there was the
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revelation that came out that the u.s. is listening on brazilian president dilma rousseff personal phone calls and this sparked outrage in brazil and even caused president rousseff to cancel planned meeting she had earlier this month at the white house and they were supposed to discuss at this meeting this defense contract you talked about about a forty five billion dollar boeing contract for eighteen fighter jets so that could be in danger now is. this just speaks to a number of things that are in danger now as you mentioned the european trade deal that was going to be worth two hundred seventy two. billion dollars for both economies and create two million jobs that could be at risk you know the trade deal may not be a risk but there could be new restrictions that european trading partners want to put on it that involves data protection that could cost u.s. companies money in the long run now a report from our information technology and innovation foundation from that foundation it's found that the n.s.a.
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surveillance program could cost america's cloud computing industry up to thirty five billion dollars over the next three years and this is all a result of reputational damage done to these companies abroad now in terms of tech backlash what can the u.s. companies anticipate seen in terms of overseas drop in earnings anything about nature. well it's ironic you may remember last year i think there was when members of congress here blew the whistle on chinese telecom company always saying that they were putting little back doors into their into their technology and that they encouraged to u.s. companies not to do business with them well now that same argument applies to many u.s. companies have been revealed that they were installing back doors into their encryption software at the behest of the n.s.a. and just give you a few numbers here facebook has two hundred sixty one million active users in europe apple last year of its income twenty two percent of it came from europe a lot of these tech companies are very involved in europe they're not just in the
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united states so when europeans perceive these tech companies as kind of being the the sentinels of the n.s.a. spying program that's going to affect business that's done as you mentioned the thirty five billion dollars hit to the cloud computing industry well here's another one how about a one hundred eighty billion dollars hit or twenty five percent decrease in technology search for technology services companies by two thousand and sixteen that was a study that was done. that was done earlier by cambridge massachusetts a research group in cambridge massachusetts found this huge economic consequence telecom companies over the next few years as a result of this n.s.a. scandal now sam how are companies that provide a kind of. touched on this before but provide us secure communications services reacting to n.s.a. spying abroad. well you would think that a lot of these companies that do provide secure phone connections are sick like silent hill or silent circle i'm sorry are secure email connections like a lot of the bit would be booms and in this sort of environment but just the right
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question is how these companies reacted to the n.s.a. demanding information about their users and with what we saw with with a lot of it they just closed the door on it rather than handing over the encryption codes of their users data lava bit closed the door so a lot of these companies have decided to stop their business rather than comply with a lot of the n.s.a. and i said guidelines. now sam with the preemptive shutter of secure communications services like like you said like silent circle and lava bit could n.s.a. spying inadvertently kill innovation altogether in terms of tech. yeah and it is killing innovation as i mentioned you would think that these these tech companies that boast that they offer secure communications would be the next field of innovation that people would turn to once they realized you know the free market would work and they realize that a google and facebook and all these companies are handing over my dad to the n.s.a.
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i don't feel secure i don't feel like my privacy is being protected i'm going to go to these companies that do do that but do boast that they are going to do that unfortunately the way the n.s.a. has cracked down on these secure companies like a lot of bit people don't have that option that kills innovation it keeps people in these old companies that are you doing what the n.s.a. wants them to do so so that's just another one of the economic consequences that you see boiling out of all this from failed trade deals the failed defense contracts with with brazil or or this now this in this kind of crunch on on innovation when you're going after companies that it's secure communications now sam finally well i want to ask you do you believe that n.s.a. spying will discourage overall online karma commerce just basic shopping stuff like that. i mean occurred you know i think about how much business you do online when you're buying stuff think about e-bay think about what online commerce
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has done to small mom and pop stores that no longer need a brick and mortar stablish meant for customers to go shop and they can just put their products online and sell them once people realize that they're not secure with their transactions online that they might be monitored what they're buying that they might be might be monitoring what they're buying that discourages people from going online and buying stuff which could be another hit to the economy. well very you have it thank you sam that was political commentator sam sachs. turning now to tobacco or should i say non-tobacco tobacco like products welcome the cigarette they have the shape and the feel of plastic tobacco cigs but they aren't while they're designed to look at feel like the real thing electronic cigarettes or vaporize nicotine devices are to correspondent
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a mirror david looks into the industry that is giving classic tobacco manufacturers a run for their money. it's the latest trend to take the tobacco world by storm the electronic cigarette when it came on the scene in two thousand and seven it was virtually unheard of but in just six years the device has turned into a billion dollar industry even though it's still called a cigarette and can even look like one many of its users say it's the furthest thing from smoking but we call it paper i was like water vapor. back when all you have it all tarring along and that's jonathan elias owner of my one of the only full service bathing shops in northern virginia and he says it's the non-tobacco aspect that's really appealing to customers unlike traditional cigarettes that burn tobacco and paper each cigarettes use a battery to heat a liquid containing nicotine which is stored in flavored cartridges and that substance is then converted into vapor it's a technological tool that allows for users to adjust their nicotine level which
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elia says is helping adults slowly wean themselves off of conventional smoking despite the anecdotal evidence the f.d.a. has yet to conduct a study proving that isa carets helped to quit smoking and one of the products key demographics never smoked regular cigarettes to begin with that puts into question the kind of health effects this has on adults and now children who are picking this up as a popular pastime the percentage of middle and high school students who use electronic cigarettes more than doubled between two thousand and eleven and two thousand and twelve unlike other tobacco products the cigarettes can be sold the minors in many places throughout the country but perhaps what's most concerning for anti-tobacco advocates is that these devices can easily be purchased by anyone at any time right on the internet. joining me now to discuss the nascent industry of cigarettes and how the tobacco world is reacting to this burgeoning market is the deputy director of research and media for analytics alex then
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a man highly excited and very well and thanks for having now first and foremost provides research in some of the most regulated sectors of the economy so obviously tobacco is huge for you guys correct definitely falls underneath our our focus. really look at investment ideas and themes that emerge as well as topics that affect that are relevant for investors that affect a range of companies and industries i want to start off by asking about these cigarettes now does the success of cigarettes really depend upon teams using them and are they have a major part of the customer base teens. i can't really speak to how the proportion of teens and whether it's a business strategy in fact the company is particular the tobacco companies involved in this you know would like to see age restrictions. it doesn't really behoove them in the long term to run afoul of the kind of regulatory actions coming their way but it is perceived as a growth area and it's
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a growth area not only for current users but potentially new users and really for the first time we're looking at federal regulation of this of this product electronic cigarettes in conjunction with it and to be considered a potential tobacco product now he cigarettes they're different enough from traditional cigarettes that currently there are no existing federal and state laws pertaining to them so you know it's setting up the race to impose new regulations and i got to ask you are the industry lobbyists really kind of on their horse in terms of representing them present and kind of protecting their financial interests in the industry one of the arguments here and actually the f.d.a. is director of the center for parts to back our products which seller was speaking an event in d.c. . today and one of the areas that the f.d.a. is focused on is harm reduction versus abstinence wholly and the and the emphasis seems to be on harm reduction and so this product the product is good beast
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perceived as a potential turn of but this is for the for the for the first opportunity a chance for the f.d.a. to actually propose potential. restrictions or requirements essentially under their auspices now actually they are some big hollywood names they've started using these these little products and you know there's they're hawking these all over the place we want to play this great t.v. ad for you know check this out. i am in love with you saying now that i switched to blue i'm sure they're about myself and i feel free to have one almost anywhere when i'm driving home watching t.v. when i'm in the point is you can smoke blew virtually any. we're all adults. time we take our friends in the mccarthy stephen dorff i mean like look at that i love that's kind of amazing they do you think some of the biggest players in the market today are really kind of trying to take advantage of
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the fact that you can do this indoors that's a big thing is that a big part of their marketing ploy it seems like it seems like this is as you saw from the segment for earlier a real growth area sales have doubled in these cigarettes every year since two thousand and eight they're talking about a one billion dollar industry in terms of the forecast for twenty thirteen some estimates have they're growing to ten billion dollars in terms of the size of a market by twenty seventeen and this is why the f.d.a. in its demon regulations any day now could put out a centrally. the beginning of a rule making again to give it give that agency the authority to address cigarettes which traditionally haven't fallen under the f.d.a. is attention like other tobacco products now we hear the phrase like big tobacco referring to large companies and manufacturers of cigarettes is so-called. big tobacco behind cigarettes as well well certainly in a lot of ways there's there's a lot of different players in the cigarette industry in the u.s.
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but it's also very concentrated and many of the biggest brands are the major tobacco companies and again because of the growth opportunities but it's you know it's as an industry it's one that's engaged in this process with the f.d.a. they're talking about work if it comes on the f.d.a. has authority working with them on age restrictions and safe and comfortable getting comfortable sales and marketing and distribution limitations and the centrally setting up a regulatory structure a framework now alex we have to go to a quick break but stick around because i want to grill you about fed liquidity issues after this he's not going anywhere but coming out ben bernanke he said the fed was ready to blaze a tapering path to quantitative easing so what's the hold up alex is going to stick around and tackle this topic with me after the break plus everyone likes free stuff and today a gaggle of companies out there can help you solicit cash for your next big buy that's the big deal.
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i know c.n.n. the m.s.m. b.c. fox news have taken some slightly but the fact is i admire their commitment to cover all sides of the story just in case one of them happens to be accurate. that was funny but it's close enough for the truth from the might think. it's because one full attention and the mainstream media work side by side with you is actually on here. and our teenagers we have a different brain. ok oh yeah because the news of the world just is not this funny
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i'm not laughing dammit i'm not god. i don't know if. you guys stick to the jokes well handed to me i said that i had. and. there was a new alert innovation scare me a little bit. there is breaking news tonight and we are continuing to follow the breaking news. alexander's family cry tears of joy at a brave thing. that has ever regard it a quart of water around. there's a story sort of movies playing out in real life. are
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you willing to pay more for safety well late last week the federal reserve seemed to say yes when it proposed a new set of capital requirements now the idea behind the guidelines that's the big question is to make sure u.s. banks hold on to at least thirty days of liquid assets that could be easily sold federal reserve chairman ben bernanke he said that it would quote if he coverage ratio would act as a cushion for the banks who would be able to survive a credit squeeze without government needing to step in and bail him out like last time now the proposal is based on an agreement from the basle committee on banking supervision but it's tougher than basel and will force us banks to meet standards two years ahead of their foreign counterparts now sticking around to discuss this more than tobacco you can do much more than tobacco alex let's let's talk about you
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know liquidity liquidity issues first thing i want to ask you is in a deviation from the greenspan years which the hinton suggested that we're going to start tapering to back in september bernanke explicitly pinpointed a path to tapering at six point five percent unemployment. that's a very very kind of what i would see as an arbitrary number in terms of we've never decided to do anything like this and to tie tapering to unemployment why does this guessing game in the global markets continue in terms of when we should stop tapering you have to take a taking a step back and our research team will focus on issues like tax policy deficit macro drivers in addition to some sectors specific work we talked about tobacco health care financial services energy utilities all falls under that but of course when it comes to fed and interest rates whether it's the fed as a regulatory body looking at bank capital requirements or the fed of course driving monetary policy matters to investors in a matters to us of height definitely part of our research mandate when we think
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about the fed's taper policy what the fed learned this year is talking about tapering let alone tapering is tightening and the market and the market reacted. most participants were surprised at the lack of taper after the open market committee september meeting so you mention that target unemployment rate point five unemployment and there's all these different tiers of how you can measure unemployment as well i believe there are seven different tiers to nine different years of unemployment why six point five so hides market strategist steve east what he his first rule of watching is listen to what the fed says and it seems like the fed is starting to walk walk back a little bit from really targeting a specific rate of unemployment there's they're going to be sensitive to the data they're going to look at a lot of data it's not just going to be the employment picture although that's important but it's also going to be inflation is also going to be personal consumption expenditure is going to be a number of a number of those things and by steve's estimate he doesn't forsee tapering
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beginning before the march twenty fourth team meeting and really at the earliest so there's there's plenty of plenty of data to see before then and it might be because there's been a. bit of a change of thinking in recent months among those voting members of the fed's board and you. this liquidity coverage ratio it's kind of an idea that won't be fully implemented until two thousand and seventeen in the first place you know here in the u.s. and that's way before foreign counterparts and banks there why do you think the way it is is it just hard the just to get this underway and to make happen so we have a financial services analyst grow sions and he looks at a lot of these financial regulatory issues including various bank capital requirements and like a lot of things that we know with tobacco and work from patrick hughes the regulatory process is a deliberate one these things take time there are often done in conjunction with industry and other participants it's really a chance to make sure that it's that it's done smoothly seamlessly with time to
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prepare and knowing the rules of the road but does that time allow the banks then to do finagle the system if you will and get themselves set up in a way to game the system in a sense that they know that they have this window in which they can capitalize is that not the case well the banks the banks are capitalizing the banks are much better capitalized than they are now it's these these these are achievable targets for the largest banks they're out there on the road there they know where they have to go they know when they need to get out there and it doesn't seem like any gamesmanship should should be involved ok now what's the tapering starts expected that long term interest rates and mortgage rates will begin to rise you know and this is putting the brakes on the housing recovery in general you know that led us to the recession in the first place how does the fed avoid having to start off the tapering and not lead it to a place that would hurt the housing recovery so the fed is going to be very very attuned to those market dynamics that you mentioned. i mentioned you know they're
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going to be paying attention to the data the risk right now again from steve looks like it looks like deflation is a bigger concern of the fed is that inflation just you know later taper than a sooner to avoid just a problem you indicated alex semin thank you so much for joining us from head analytics. we got to have you back very soon to discuss further and thanks for sticking around thank you segments you got the tough one. time now for the video. series big deal crowdsourcing now you may have heard of sites like kickstarter which helps regular people get access to funding for everything from our projects to ork degree search to new technologies for letting them hit up friends and start
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street and strangers for contributions to their crazy ideas but what if your project is a little more personal like a vacation or a wedding well there's a site for that too now a startup called boost up lets its users raise money for quote life's big purchases and it just raised one million dollars for itself from investors so is this all kind of tacky or is it going to improve outcomes for gift giving here to talk about this the one the only. hello my dear ok as they go in there now first and foremost you know getting gas to pay for your wedding was considered kind of tacky and low brow for a while but now it's the norm and it seems like an easier thing to do having guests pay for your vacation is nothing to do with your wedding skipping i guess buddies what do you think about this crazy or it's kind of crazy but i want to correct you a little bit because it's not it certain guests used to pay for weddings right like the bride's parents were always in charge of paying for the entire wedding so now is that's kind of seen as a little unmodern everyone's kind of trying to democratize the process
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a little more and it's not like women have to pay dowries to get married anymore people like we know i don't have enough money for the delicious like right rose to want to eat at this wedding we don't have money for all the favors so instead they're saying hey let's let everyone in on the fun and if you want to eat this delicious dinner you might as well put. some money for it in terms of occasions i agree with you it's like i don't want to pay fifty dollars just so i can look at your face book out lying on a beach as i'm sitting at work no not that i look at facebook at work you know there's something you said for this because there are so many companies popping up that are doing this company's are benefiting from it just like you know honda is going to pay a little bit like five hundred dollars for you to buy a honda so they benefit from it too exactly and the companies getting on board it seems to only be growing this is the first one but i'm sure that it's only going to grow from there but you know the benefits to crowdsourcing oneself seemed dubious you know can you sell equity in your own individual success then what do you think of that would you ever do it yourself i would write i want some friends i don't
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want i don't love them back to me that it totally depends right because there are some things if you crowdsource successfully it means you already have a built in audience right like your project has already achieved a degree of success because you've gotten enough attention in order to fund yourself in the first place plus you get a lot of funding for things that people might think aren't commercially viable but if you get enough people interested in it then they're going to watch it and see it and then even other people you know big time investors might be able to say hey there is money to be made here and you can actually shift the stream of where money goes it's a very good point on something that i generally am against your kind of play me quite well here it could crowdsourcing to help capital move more efficiently throughout the market no you know well you know how difficult it is to buy a gift for someone right like there are two types of gift giving there are people who really surprise me and they really mean it and then there are people who are like surprise me and then they're like why don't you get me what i want so there's something called dead loss right and it's the difference between the value that you paid for something and the value that people perceive that it's worth so gift
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giving has this huge dead loss because you might think like oh this isn't ok ring out of nowhere with that much but i'm like wait i paid thirty dollars for this ring . are you going to take it or just with that you know that people are saying listen this is actually what i want for a gift i want to vacation to maui you can say oh you gave fifty dollars. for my vacation to maui i know that's how much you value me and then you kind of get rich it becomes a little bit more efficient and i will try giving the pictures from i want to get it is that day and you can feel really bad as you're sitting at your desk and rachel you're fantastic thank you so much for joining us gotta come back soon for more banter that's all for now but you can see all segments featured in today's show on you tube at youtube dot com slash boom bust our teeth well so love hearing from you so please check out our facebook page at facebook dot com slash boom bust r.j. for all of us here boom bust thank you for watching we'll see m.r.o. by.
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rostock rules in effect that means you can jump in anytime you want. mission creep couldn't take three. three. three. three. three. three.
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a canadian. making way. for the first time in history us. directly from the victims of a cia drone strike. and a red light. in the u.k. as the majority of the population. many believing the benefits failed.


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